Archives

Editor’s Note: As Chief Investment Strategist of Total Wealth, Keith believes in making his track record of recommendations easily accessible to all readers within seconds – and that’s why he’s compiled an Archives page. Here you’ll find links to every Total Wealth article Keith has published since Total Wealth’s creation on October 2, 2014, posted in reverse chronological order.

Category: Position Sizing

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  • Keith Fitz-Gerald Oct 04, 2019
    This One Tool Made the Difference Between Bankruptcy and $13 Million

    The worst manufacturing numbers in a decade remind me of an old joke that’s made its way around financial circles over the years. It goes something like this:

    An investment banker walks into a room where his cohorts are in a meeting. “I’ve got good news and bad news,” he announces. “The bad news is, we’ve just lost $100 million. The good news is, it wasn’t ours.” An associate raises his hand. “What was the bad news again?”

    It’s humor, but there’s more than a grain of truth to the story. Whether we’re talking about brokers, bankers, or even your most trusted financial advisor, you cannot rely on anyone else to care about your money and keep it safe.

    At the end of the day, the only thing standing between your portfolio and catastrophic loss is your own caution and proper risk management.

    I know it’s not the most exciting part of investing. But there’s zero doubt in my mind it is the most important.

    That’s why it’s part of the Total Wealth Strategy.

    One tool called position sizing stands out above all others as the most powerful – and not just for cutting risk either, but for boosting your profits, too.

    To see what I mean, consider this anecdote from trading psychologist Dr. Van Tharp:

    “We’ve done many simulated games in which everyone gets the same trades. At the end of the simulation, 100 different people will have 100 different final equities. And after 50 trades, we’ve seen final equities that range from bankrupt to $13 million – yet everyone started with $100,000, and they all got the same trades. Position sizing and individual psychology were the only two factors involved – which shows just how important position sizing really is.”

    Here’s how I recommend you start using it right now

  • Keith Fitz-Gerald Jun 28, 2019
    This One Tool Made the Difference Between Bankruptcy and $13 Million

    There’s an old joke that’s made its way around financial circles over the years. It goes something like this:

    An investment banker walks into a room where his cohorts are in a meeting. “I’ve got good news and bad news,” he announces. “The bad news is, we’ve just lost $100 million. The good news is, it wasn’t ours.” An associate raises his hand. “What was the bad news again?”

    It’s humor, but there’s more than a grain of truth to the story. Whether we’re talking about brokers, bankers, or even your most trusted financial advisor, you cannot rely on anyone else to care about your money and keep it safe.

    At the end of the day, the only thing standing between your portfolio and catastrophic loss is your own caution and proper risk management.

    I know it’s not the most exciting part of investing. But there’s zero doubt in my mind it is the most important.

    That’s why it’s part of my Total Wealth Strategy.

    One tool called position sizing stands out above all others as the most powerful – and not just for cutting risk either, but for boosting your profits, too.

    To see what I mean, consider this anecdote from trading psychologist Dr. Van Tharp:

    “We’ve done many simulated games in which everyone gets the same trades. At the end of the simulation, 100 different people will have 100 different final equities. And after 50 trades, we’ve seen final equities that range from bankrupt to $13 million – yet everyone started with $100,000, and they all got the same trades. Position sizing and individual psychology were the only two factors involved – which shows just how important position sizing really is.”

    Here’s how I recommend you start using it right now

  • Keith Fitz-Gerald May 18, 2019
    Three Strategies That Work Best Right Now (and Why Counter-Intuitive Thinking Is Key)

    I got an interesting question earlier this week while in Las Vegas where I was speaking at the MoneyShow… what works best right now?

    Usually, that’s a question related to which specific stocks, bonds, ETFs or other funds you want to buy. But in this case, the person asking wanted to know what kinds of investment methods work best given current market conditions and how you adjust to all the volatility gumming up the works.

    That’s a savvy question, especially since there’s a very counter-intuitive answer.

    Asking which stocks are “best” is only half the battle when it comes to big profits. To really hit the home runs you and I both know are out there, you’ve got to know which methods work best and when to use them.

    Right now, for example, the markets are completely dominated by tweet-driven trading. This favors day traders and the institutional big boys because it caters to the short-term trading methods they use.

    That does NOT mean you’re out of luck as an investor, though. You just have to change up your approach a bit…

  • Keith Fitz-Gerald Mar 09, 2019
    Don’t Make These Four Profit-Robbing Mistakes

    There’s a lot of discussion at the moment about which way the markets are going to go from here. Some of it’s good, but frankly, a lot of it’s bad.

    Like that’s a shock!!??

    The media loves negative stories because that’s how they keep you hooked and emotionally off-guard. Wall Street, of course, plays along because they know negative headlines make it easier to separate you from your retirement.

    The other thing to think about is that they’re playing “catch up,” whereas we’re often months ahead of developments they’re only just getting around to reporting.

    Like for example, the possibility of short-term market turbulence but higher prices ahead… that’s the latest from Wells Fargo’s Christopher Harvey who’s a noted bear and seconded by Merrill Lynch’s Stephen Suttmeier – both as reported by CNBC earlier this week. Or Bloomberg’s report that JPMorgan analyst Stephen Tusa now considers the $6 target he’s got on General Electric Co. (NYSE:GE) to be “generous.”

    Apple Inc. (NasdaqGS:AAPL)’s pivot, meanwhile, is beginning to draw attention for the reasons we laid out more than a year ago when I first told you about why services could double that stock’s value. Tesla Inc. (NasdaqGS:TSLA)’s in trouble…

    You get the idea.

    Anyway, the reason I am bringing all this up is not to take a victory lap.

    There are four big profit-robbing mistakes investors are making at the moment – and want to make sure you’re not among ’em.


    (Click here)

  • Keith Fitz-Gerald Mar 16, 2016
    9 
    How to Make Your Retirement as Profitable as Possible

    James Altucher thinks 401k retirement plans are scams.

    In a video that went viral after being posted last year on Business Insider, the 48-year old hedge fund manager, entrepreneur and best-selling author says that “I honestly think that you should just take your money out of 401ks.”

    His reasons?

    He lists three. You’ll have no idea what’s happening to your money when it’s tied up in a 401k. You won’t be able to touch it for years, maybe even decades, without paying a penalty. And, his most serious condemnation: “I mean, the average 401 k, they won’t really tell you this, probably returns maybe 0.5% a year.”

    Continue reading

  • Keith Fitz-Gerald Feb 13, 2015
    19 
    This One Tool Made the Difference between Bankruptcy and $13 Million

    There’s an old joke that’s made its way around financial circles over the years. It goes something like this:

    An investment banker walks into a room where his cohorts are in a meeting. “I’ve got good news and bad news,” he announces. “The bad news is, we’ve just lost $100 million. The good news is, it wasn’t ours.” An associate raises his hand. “What was the bad news again?”

    It’s humor, but there’s more than a grain of truth to the story. Whether we’re talking about brokers, bankers, or even your most trusted financial advisor, you cannot rely on anyone else to care about your money and keep it safe.

    At the end of the day, the only thing standing between your portfolio and catastrophic loss is your own caution and proper risk management.

    I know it’s not the most exciting part of investing. But there’s zero doubt in my mind it is the most important.

    That’s why it’s the third part of my Total Wealth Strategy.

    And one tool called position sizing stands out above all others as the most powerful, and not just for cutting risk either, but for boosting your profits, too.

    To see what I mean, consider this anecdote from trading psychologist Dr. Van Tharp:

    “We’ve done many simulated games in which everyone gets the same trades. At the end of the simulation, 100 different people will have 100 different final equities. And after 50 trades, we’ve seen final equities that range from bankrupt to $13 million – yet everyone started with $100,000, and they all got the same trades. Position sizing and individual psychology were the only two factors involved – which shows just how important position sizing really is.”

    Here’s how I recommend you start using it right now…

    Continue reading